The Food and Drink Report 2016
18 February 2016
After decades of living in the shadows of more visible manufacturing sectors, the food and drink sector is stepping into the limelight thanks to rising business confidence, product innovation and investment in automation. BDO’s Food and Drink Report 2016, in association with the Institution of Mechanical Engineers, analyses the sentiment, challenges and changing macro landscape for UK companies operating in the food and drink industry, the single largest manufacturing sector in the UK, with a turnover of £95.4bn.
The report found that 79% of those surveyed are positive about the future of the industry, with 86% of firms expecting revenue growth of up to 20% in the next year.
Pricing pressures, the volatility of raw materials costs and skills shortages are major challenges for manufacturers. However through product innovation and investment the food and drink sector has become increasingly efficient and smart in dealing with market pressures.
Nearly two thirds of firms surveyed said that new product development would be a major source of growth, with 60% and 43% saying access to new UK markets and export markets respectively will be increasingly important part of their growth strategies.
Automation has become an important issue on the boardroom agenda, with more than half of the food and drink firms questioned saying they are increasing investment in this area.
We are grateful to all of those who shared their opinions – we hope you find this report interesting and thought provoking for your business.
Download our 2017 Food & Drink report